If you’re looking to purchase or refinance a home that needs major structural repairs and/or renovations, the full FHA 203(k) loan is an ideal loan program to consider. Best of all, with the 230(k) loan program, you can buy a home, make the repairs or renovations you want to, and everything will be financed into one FHA home loan!

Typical Repair/Renovation Items:

• Roof Replacements
• Kitchen Remodel
• Bathroom Remodel
• Room Additions
• Foundation Repairs
• Electrical Systems
• Heating and Air Conditioning Systems
• Window or Door replacement
• Plumbing
• Insulation Applications
• And Much More!

Things to Know about an FHA 203(k):

• Owner Occupied Properties Only
• Purchase or Refinance
• 620 Minimum Credit Score*
• Can be combined with an EEM (Energy Efficient Mortgage)

*Restrictions Apply. For more information on the FHA 203(k) renovation loan, contact us today!

Continued low inventory coupled with a substantial increase in sales, provides an intriguing start to 2012 in the core counties that comprise the Greater Sacramento Area. 3,417 new sales contracts in Placer, Sacramento, El Dorado and Yolo counties represent a 39% increase over the same month in 2011 and a 44% increase compared to December’s figures. New contracts for short-sale transactions represented close to 48% of the total sales in Sacramento, Placer & Yolo and over 40% in El Dorado County.  Bank owned, or REO sales, have dropped dramatically in the four county areas from 39.6% of sales in January, 2011 to 23.6% in January, 2012. This begs the question: where is the alleged “shadow inventory” hiding?

Months of inventory, which is calculated by the rate-of-sale compared to standing inventory, compares as follows: Sacramento 2.4, Placer 2.8, Yolo 3.2 and El Dorado 4.7.  Signs of a neutral real estate market typically include 4-6 months of inventory. Less than 4 months is typically deemed a “Seller’s Market”. Uncertainty around the amount and release of bank owned inventory however, combined with low equity for non-distressed homeowners, makes 2012 supply forecasts very challenging to predict.

The erosion in average sales price appears to be slowing and finished in January 2012 accordingly: Sacramento $180,000; Placer $282,000; Yolo $232,000. El Dorado County closed out at $317,000; 5% above January 2011.

“Agents are experiencing multiple offers in all market areas and most price points when the property is appropriately positioned. Our market will remain heavily dependent upon a steady stream of short-sale listings and equity sellers who are willing to take advantage of low prices and interest rates on their next purchase,” stated Pat Shea, President, Lyon Real Estate. “Lending seems to be opening up with slight improvement in loan to value requirements and monthly earning multipliers that determine maximum loan amounts.”

“An old cliché states: a bell does not ring when we hit rock bottom. Many experts do believe, however, that we will experience a small but steady improvement in number of units sold and price point this year.”

December set the table for a very solid start to the 2012 real estate market in the 4-core counties of which comprises the Greater Sacramento Area. 2,790 new contracts in Sacramento, Placer, El Dorado and Yolo counties represents a 3% increase over November’s number and a whopping 56% increase compared to December of 2010. 45% of these new contracts consisted of short-sale transactions. This signifies a continued trend among note holders to mitigate institutional losses and also allow distressed sellers to rebuild their financial lives more swiftly.

Another bright spot appears in the price range of $400,000 and above. Although 182 sales represented a 10% dip from November, it still maintains a 26% increase over December 2010. Consider again, the strength of November and December open contracts combined to be optimistic about the first quarter of the New Year. “Supply side economics will focus your attention on a glaring issue,” stated Pat Shea, President, Lyon Real Estate. “Months of inventory, which is calculated by the rate of sale compared to standing inventory, compares as follows: Sacramento 2.0, Yolo 2.3, Placer 2.5 and El Dorado 3.4. This represents a continued downward trend with notable month-over-month and significant year-over-year decreases.”

“Agents and Buyers alike continue to hope for more of the REO or Bank Owned listings to hit the market. Otherwise, they will be heavily dependent upon a steady stream of short-sale listings and successful negotiations with existing lien holders. Review of these metrics might suggest that housing prices will begin a slight rise,” continued Shea. “Other factors, such as consumer confidence, unemployment and interest rates will also have an impact. Many experts believe that we are bouncing around market bottom and could see a small but steady improvement in number of units sold and price point in 2012.”

Mike Wheeler has recently been appointed VP of Production for VITEK Mortgage Group. He will lead the current mortgage originator sales force, in addition to developing new accounts and markets, with the goal of doubling production within the next year. Wheeler has 20 years of experience in the mortgage industry, most recently as Regional Manager for National City Mortgage and American Home Mortgage.

VITEK’s President, Harry Duncan, is excited about Wheeler joining the company’s leadership team stating,

“Mike is a very accomplished leader, mentor and coach with 20 years of experience in the mortgage industry. He has built highly productive teams with leadership skills that attract, retain and synergize talent to increase sales and market share. Mike previously worked at National City Mortgage in Northern California and grew his district to number 1 in the company. He has been very focused and motivational in previous roles bringing Operations/Production teams together to maximize potential. Mike is a visionary in this industry operating under a ‘one team’ philosophy that builds a winning culture.”

If you would like to get in touch with Mr. Wheeler, you may contact him through the following channels.

Office: (916) 486-6925

Email: mwheeler@teamvitek.com

There was another slight increase in the number of overall closed sales in the four county area of Sacramento, Placer, El Dorado and Yolo counties. Sales were up 8% from last year indicating improved activity. The real news however was the dramatic shift in the number of closed Short Sales versus closed REO’s. Short Sale closings rose sharply; showing a 38% increase over last year, while REO closings were down 13% over the same time period. “This trend is indicative of a shift in how many banks are approaching distressed property inventory”, said Larry Knapp, CEO, Lyon Real Estate. “Since distressed properties represent the majority of sales right now, banks have hired more highly-trained staff to expedite the process. There also seems to be a general consensus in the bank community that negotiating a short sale can minimize the bank’s costs and properties are better maintained than with a foreclosure.”

Overall, the percentage of distressed sales (Short Sales and REO’s) represented nearly 70% of all closings. More than two out of three closings were in the distressed category; the highest percentage this year.

The average price and the average price per square foot were also down sharply with Short Sales and REO’s down in number by 14% and 13% respectively. The inventory for Short Sales was down 33% from last year while the REO inventory was down 23%. “This reflects a continued vigorous market of buyers snapping up the extraordinary values with low prices and historically low interest rates,” stated Knapp.

On the other hand, closings on sales over $400,000 were down 25% from the prior year. In a traditional sales market this would be indicative of a seasonal trend.